System and method for card processing with automated payment of club, merchant, and service provider fees

ABSTRACT

An apparatus and methods for a card that allows a cardholder to set up auto-charge payment of dues and fees to a series of clubs, merchants or service providers. The card also may be used for other transactions that accept credit cards. The apparatus includes a database containing information of the associated clubs, merchants and service providers, so that applicants and cardholders can easily configure auto-charging for multiple business concerns in one sitting. The apparatus may process auto-charge transactions in an automated fashion without requiring a cardholder to submit payment authorization or the business concern to submit a charge for each payment. Inconvenience and administrative costs to the cardholder and the business concern are reduced. The system and method provide a competitive advantage to the associated business concerns to secure the initial account and then to maintain it. The system and method encourages card loyalty of both the card members and the business concerns to the card provider.

FIELD OF THE INVENTION

The present invention relates generally to a system and method forproviding credit instruments whereby the credit processing system ispreconfigured with a series of participating clubs, merchants, orservice providers such that an applicant can provide for automatedpayment of dues and fees without having to engage in a separatetransaction with each club, merchant or service provider.

BACKGROUND OF THE INVENTION

It is increasingly common that consumers pay for many of their expensesusing credit cards, bankcards or like instruments rather than using cashor checks. Consumers do this because they find it more convenient thatsending cash or checks. Using credit cards in this fashion is alsodesirable because the consumer can borrow using his/her credit card whenpersonal funds are low, and also because an itemized list of payments isgenerated each month.

Some clubs, merchants or service providers may require fixed payments ona periodic basis, such as weekly, monthly, semi-annually, and so forth.In the case of a club, such as a health club, a consumer may be requiredto send dues each month. Using a credit card, the consumer may send in apayment slip each month with the credit card number, expiration date anda signature authorizing the charge to the consumer's credit card. Or theconsumer may call the club's place of business to give like informationverbally over the phone. Or the consumer may contact the club to givelike information using a home computer accessing the Internet.

In each case the consumer is relieved of the inconvenience of sendingcash, checks or the equivalent. Yet in each case the consumer still mustinitiate the transaction each month by mail, telephone or computer. Forthe customer associated with a number of clubs requiring periodicpayments, this may involve a significant, number of transactions for theconsumer to initiate each week or month. Moreover, since payment duedates may differ for each club, the consumer cannot make the overalltask more efficient by doing all the payments at once unless he/she iswilling to pay some bills early or some bills late. Thus, this approachto paying bills using a credit instrument has significant shortcomingsfor the consumer.

From the perspective of the club, processing credit card information isadvantageous since processing tends to be easier than for checks.However, there are still significant shortfalls. The club must await thesubmission of payment from the consumer for each cycle. Sometimesconsumers will be late in contacting the club to submit their creditcard information. Sometimes communication lapses will result inincorrect information being submitted to the club, such as when theconsumer fills in the wrong credit card information or a customerservice representative misunderstands information given over thetelephone.

And even when no such difficulties arise, the club still must initiatethe transaction with the card provider by submitting a separate chargefor each consumer on each payment cycle. For a club having hundreds orthousands of members, this may entail the initiation of hundreds orthousands of charges at different times. This is a significantdisadvantage because of the time and costs imposed on the club.Additionally, charges may be imposed on the club and/or the cardprovider when an interchange processor is contacted for each transactioninitiated by the club. Additionally, there may be communicationsdifficulties in contacting a card provider bank or interchange to submitthe charge, such as when a direct-dial connection fails or an Internetor like computer network connection fails.

Sometimes a consumer will give a club permission to bill his/her creditcard on an ongoing basis so that the consumer does not have to initiatepayment each cycle. While this may lighten the burden on the consumersomewhat, it does not eliminate the burden on the club, which still mustsubmit a charge to the consumer's credit card each cycle. Moreover, theconsumer must still engage in an initial transaction with each club,merchant or service provider, to grant this authorization to bill theconsumer's credit card on a periodic basis. For the consumer wishing togive such authorization to multiple clubs, merchants or serviceproviders, a series of separate transactions must be undertaken. This isa significant shortcoming.

Other problems and drawbacks also exist.

SUMMARY OF THE INVENTION

For these and like reasons, what is desired is a system and method ofproviding a credit card system that is associated with a series ofclubs, merchants, service providers or the like so that a fullyautomated payment of dues or fees can be effectuated with minimaltransactions.

Accordingly, it is one object of the present invention to overcome oneor more of the aforementioned and other limitations of existing systemsand methods for payment of fees or dues using a credit instrument.

It is another object of the invention to provide a credit instrumentthat is pre-associated with a series of clubs, merchants or serviceproviders so that a cardholder can authorize automated payment formultiple business concerns in a single transaction with the cardprovider.

It is another object of the invention to provide such a creditinstrument where the information for multiple business concerns isstored at a credit system processor so that the creation of automatedpayment agreements for a consumer for a plurality of such businessconcerns is easily effectuated.

It is another object of the invention to provide a credit instrumentapplication system where an applicant is solicited to join clubs and setup automated payment agreements at the same time the application isbeing processed so that a competitive marketing advantage is conferredon the associated business concerns.

It is another object of the invention to provide such a creditinstrument associated with a series of business concerns such that acompetitive advantage is conferred on the associated business concernsbecause the cardholder is encouraged to maintain the accounts therewith.

It is another object of the invention to provide such a creditinstrument associated with a series of business concerns that provides acompetitive advantage for the card provider by maximizing revenue andcreating barriers to exit for both the associated business concerns andthe cardholders.

To achieve these and other objects of the present invention, and inaccordance with the purpose of the invention, as embodied and broadlydescribed, an embodiment of the present invention comprises an apparatusand method for a card that allows a cardholder to set up auto-chargepayment of dues and fees to a series of clubs, merchants or serviceproviders. The card also may be used for other transactions that acceptcredit cards. The system includes a database containing information ofthe associated clubs, merchants and service providers, so thatapplicants and cardholders can easily configure auto-charging formultiple business concerns in one sitting. The system may then processauto-charge transactions in an automated fashion without requiring acardholder to submit payment authorization or the business concern tosubmit a charge for each periodic payment. Inconvenience andadministrative costs to the cardholder and the business concerns aregreatly reduced. The system and method provide a competitive advantageto the associated business concerns to secure the initial account andthen to retain it. The system and method encourages card loyalty of boththe card members and the business concerns to the card provider.

The accompanying drawings are included to provide a furtherunderstanding of the invention and are incorporated in and constitutepart of this specification, illustrate several embodiments of theinvention and, together with the description, serve to explain theprinciples of the invention. It will become apparent from the drawingsand detailed description that other objects, advantages and benefits ofthe invention also exist.

Additional features and advantages of the invention will be set forth inthe description that follows, and in part will be apparent from thedescription, or may be learned by practice of the invention. Theobjectives and other advantages of the invention will be realized andattained by the system and methods, particularly pointed out in thewritten description and claims hereof as well as the appended drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The purpose and advantages of the present invention will be apparent tothose of skill in the art from the following detailed description inconjunction with the appended drawings in which like referencecharacters are used to indicate like elements, and in which:

FIG. 1 is a block diagram of the credit card processing system accordingto an embodiment of the invention, including the network, central serversystem, user systems, credit card database and various processorsystems.

FIG. 2 is a block diagram according to an embodiment of the inventionillustrating an exemplary partner and associated clubs, merchants orservice providers.

FIG. 3 is a block diagram according to an embodiment of the inventionillustrating data that may be stored by the system for various partners.

FIG. 4 is a block diagram according to an embodiment of the inventionillustrating data that may be stored in the system for installationscorresponding to an associated partner.

FIG. 5 is a block diagram according to an embodiment of the inventionillustrating data that may be stored in the system for a club, merchantor service provider.

FIG. 6 is a block diagram according to an embodiment of the inventionillustrating data that may be stored in the system for auto-chargingdues or fees for a club, merchant or service provider.

FIG. 7 is a block diagram according to an embodiment of the inventionillustrating data that may be stored in the system for a member orcardholder.

FIG. 8 is a flowchart illustrating a method, according to an embodimentof the invention, for a card provider to provide an auto-charge featureto cardholders for associated clubs, merchants and service providers.

FIG. 9 is a flowchart illustrating a method, according to an embodimentof the invention, for a user of the system to process an application onbehalf of an applicant, including the selection of auto-charge optionsfor associated clubs, merchants and service providers.

FIG. 10 is a flowchart illustrating a method, according to an embodimentof the invention, for the system to execute batch processing ofauto-charge fees or dues for cardholders who have selected theauto-charge option for clubs, merchants or service providers.

DETAILED DESCRIPTION OF THE INVENTION

As discussed in the Summary of the Invention, the present invention isdirected to a method and apparatus for a credit instrument that supportsauto-charging to clubs, merchants and service providers.

The auto-charge feature of the card can be used to automatically chargedues and fees to a cardholder's account for clubs, merchants, serviceproviders and other business concerns. As can be appreciated by thoseskill in the art, the inventive concept is well-adapted to setting upauto-charging when there is an ongoing relationship between thecardholder and the business concern, such as a health club, wherepayments are to be made each month. For the sake of clarity and brevityof this detailed description, the explanation of the invention shall bediscussed in terms of associated “clubs,” although it is to beunderstood that this also embraces merchants, service providers andother business concerns.

Additionally, the description will refer to “partners.” Partners may beentities that are associated with a number of clubs, such as auniversity or military branch. A partner may provide data to a cardprovider of a number of clubs so that applicants (e.g., students oralumni or service members) can easily join up and set up auto-chargearrangements therewith. By “partnering” with the card provider, both thepartner and the card provider derive benefits of bringing the pluralityof clubs into the system. Of course, those of skill in the art willrecognize that the benefits of the system can be derived where there areno partners, i.e., where clubs become participants in the system withoutan intermediate partner.

Overview of the System

FIG. 1 depicts an overview of the system, according to an embodiment ofthe present invention, including central server system 100; network 150;user systems 105; credit card database module 110; non-monetary businessprocessor system 115; report processor system 120; application processorsystem 125; credit bureau data module 130; monetary processor system135; dues processor system 140; and transaction processor system 145.

Central server system 100 may comprise a server system for receivingapplications, maintaining a database, processing transactions andinterfacing with user systems over network 150. Generally, centralserver system 100 includes hardware and software for supporting systemadministration, database management, application and transactionprocessing, report generation, and network-related operations. In oneembodiment, control server system 100 may interface with user systems105 over the Internet or like packet-switched networks. In such anembodiment, central server system 100 may have software to supportgraphical user interface (GUI) with user systems 105 through browserpages or the like (e.g., incorporating HTML or XML mark-up language) sothat users need little or no specialized hardware or software.

Central server system 100 may use server hardware running Microsoft NT™and using Oracle v. 7.3.4 for database operations. Central server system100 may support network related operations using software such asWeblogic™ v.3.1 for Unix. Software for processing transactions andapplications is well known in the art and, for example, may beprogrammed in high level languages such as C++. Central server system100 may be a secure system employing encryption technology, such as 128bit SSL (secure sockets layer) encryption, to protect data transmittedover the network. Central server system 100 may also require a user nameand password for a party to access the system over network 150. Centralserver system 100 may support interface with user systems 105 throughthe application of servlets and/or applets, know to those of skill inthe art, for supporting a substantially platform independent interfacewith users who have “standard” computer hardware and software.

User systems 105 may comprise any system capable of interfacing withserver system 100 over network 150. User systems 105 may comprise“standard” computer systems that do not require specialized hardware orsoftware to interface with central server system 100. User systems 105may comprise personal computers, microcomputers, minicomputers, portableelectronic devices, a computer network or other system operable to sendand receive data through network 150. In one embodiment, user systems105 may comprise a personal computer running Windows NT™ and MicrosoftInternet Explorer™ 4.0.

Network 150 may comprise any network that allows communications amongstthe components, and may encompass existing or future networktechnologies, such as the existing “Internet,” “World Wide Web,” WideArea Network, “Internet Protocol-Next Generation” (Ipng) and liketechnologies. In one embodiment, network 150 comprises the Internet sothat user systems 105 can access central server system 100 as a web siteand interface therewith using standard browser pages.

Credit card database module 110 represents the storage media employed tostore data for the system. Credit card database module 110 may be one ormore physically distinct media, such as hard drives, floppy drives,CD-ROM and other existing or future storage technologies supportingready access. Credit card database module 110 may store the account datafor the system, such as transactions data, partner data (to be discussedfurther below), installation data (to be discussed further below), clubdata, auto-charge data, member data and so forth. Generally, this modulestores records of member accounts (e.g., for posting charges andpayments), records of associated partners and clubs, and records ofauto-charge data.

Application processor system 125 is for processing credit cardapplications for the cards. Application processor 125 may communicatewith credit bureau data module 130 for retrieving and evaluatinginformation of an applicant's credit-worthiness in order to accept ordeny an application. Application processor 125 may process applicantinformation submitted by an applicant through user system 105 and reportresults back to central server system 100, which may add the applicantto credit card database module 110 if an applicant is approved.

Report processor system 120 may extract data from the database (e.g.,credit card database module 110) for reports to be generatedperiodically or by request. Report processor system 120 may present suchreports as browser or like pages to user systems 105. In one embodiment,report processor 120 comprises Crystal Info™ software as the reportingengine. In one embodiment, report processor system 120 can be accessedover the Internet by users such as partners and/or clubs to retrieveinformation regarding partner club affiliation, club membership, accountstatus and the like.

Non-monetary business processor system 115 may be a processing modulesupporting central server system 100 so that users can change certaininformation stored in credit card database module 110. A “user”generally refers to a party that is authorized to access central serversystem 100. In one embodiment, where a military branch is a partner,each base or installation may have a user authorized to acceptapplications and modify system data, such as changing the address of acardholder stored in credit card database module 110. Generally, thecard provider may have a plurality of persons authorized as users. Inone embodiment, there is a plurality of levels of authorization forusers, such that a card provider user may have access to all data, apartner user may have access only to that data pertaining to thatpartner, and a cardholder user may have access only to that datapertaining to the cardholder's account.

Monetary processor system 135 may comprise a module for submittingcharges to a cardholder's account, such as charges, payments andadjustments. Monetary processor system 135 may submit a charge request,such as a merchant number, terminal ID, account number, charge amountand current date, to transaction processor system 145. Monetaryprocessor system 135 is generally capable of operating in nominal realtime so that charge requests are submitted for processing as they arereceived. In one embodiment, monetary processor system 135 is capable ofprocessing so-called “on-us” charges submitted directly to the system(e.g., submitted directly to the card provider or bank) and so-called“not-on-us” charges submitted through an interchange (e.g., a Visam orMasterCard™ interchange, well known to those of skill in the art).Generally, monetary processor system 135 processes charges other thanthe auto-charges, such as merchant charges, adjustments, cardholderpayments, and the like.

Dues processor system 140 prepares charge requests associated withauto-charge fees or dues. Dues processor system 140 generally processes“on-us” charges so that contacting an interchange is not required. Duesprocessor 140 will periodically (e.g., daily) determine the auto-chargepayments required for cardholders. A set of transactions is prepared for“batch processing” and the transactions may be sent to transactionprocessor 145 as a group. In one embodiment, dues processor system 140is also capable of preparing transactions from external files received,for example, from a utility on a daily basis. This function is similarto the auto-charge feature for clubs and the like, except the amount ofeach transaction may vary based on the data received from the externalfile. In another embodiment, dues processor system 140 is capable ofpreparing “special club” transactions, such as processing chargessubmitted based on a merchant code set up in the system for the“general's party” or like special occasion amenable to having chargessubmitted and processed in a group fashion.

Transaction processor system 145 processes the transactions for thesystem. Generally, transaction processor receives transaction requests,accesses an account database (see, e.g., credit card database module110) and determines if the transaction is authorized or declined. Basedon the result, the pertinent card member account and merchant account isupdated as appropriate. In one embodiment, a transaction request maycomprise a merchant number, terminal ID (identifying the terminalsubmitting the request), account number, charge amount, and currentdate. Several categories of merchant numbers may be available toidentify the merchant and the nature of the transaction request. Thesecategories may include dues billing, dues adjustment, special event,recurring charge (e.g., external file from a utility submitted on adaily basis), payment or other. A transaction request, as describedabove, may be submitted to transaction processor system 145, which mayreturn a six-digit authorization code, a decline code, a decline andconfiscate message or a call bank message. The transaction processor 145or central server system 100 may post the result to the card member'saccount and transfer any payment to a club account (such as a directdeposit transaction).

Partners

FIG. 2 illustrates the concept of partners for the system. Partner 200may be a military branch that is associated with a series of clubs suchas garden club 205, officer's club 210, health club 215 and other clubs,merchants or service providers 220. More generally, a partner maycomprise a business concern, group or association that itself isassociated with a series of clubs or the like. For example, a partnermay be a university or military branch that wishes to have data of itsvarious clubs and the like entered onto the system so that students,alumni, or military personnel can readily join clubs and set upauto-charge payment arrangements. The benefits from such an arrangementto the card provider, partner and clubs are substantial.

As previously noted, the system can operate and provide substantialbenefits without intermediate partners. Yet, it can be appreciated thatthe benefits and efficiencies may be maximized when the card providerhas an arrangement with an intermediate partner associated with a numberof constituent clubs.

Data in Credit Card Database 110

FIGS. 3-7 illustrate the types of data that may be stored in credit carddatabase module 110. As those of skill in the art can appreciate, theallocation of the data types is functional and descriptive. Credit carddatabase module 110 may be a fully relational database so that each datatype can be associated with other data types as appropriate.

FIG. 3 illustrates the partner data that may be stored. In thisexemplary embodiment, partner data includes Air Force 300, Army 305,Navy 310, State University 315 and other partners 320. Each represents apartner with whom the card provider is associated.

FIG. 4 illustrates the various “installations” in the system. Aninstallation refers to a physical location of a partner that has aplurality of locations. In the military paradigm, an installation maycorrespond to a base. For example, for a Navy partner, the installationsmay include Navy Base Norfolk 400, Navy Base Washington D.C. 405, NavyBase Cecil Field 410, and other partner bases 415. By includinginstallation data, the system can provide the appropriate club data foreach base. For example, when a new recruit applies for a card at NavyBase Norfolk 400, the system may provide the appropriate list of clubs.When the new recruit is transferred to Navy Base Washington D.C. 405,the new recruit member data is easily “transferred” or reassigned to thenew base without re-entering all of his/her data. Such installation datais also useful to the partner for evaluating billings per installationor club membership per installation.

FIG. 5 illustrates the club (or merchant or service provider, etc.) datathat may be stored in credit card database module 110. In this exemplaryembodiment, for a club there may be partner 500 (identifying the partnerthe club is associated with), merchant code(s) 505, name 510 (name ofthe club), type 515 (e.g., identifying whether the entity is a club,merchant, service provider, utility, etc.), address/phone 520, managername 525 and installation ID 530 (identifying the installation).Regarding merchant code(s) 505, a club may be assigned several merchantcodes to cover different types of transactions, such as dues and duesadjustment.

FIG. 6 illustrates the auto-charge data that may be stored in creditcard database module 110. This data may be stored for a club to providethe various options for the auto-charge feature of the system. This waywhen a card member decides that he/she would like to automatically paythe officer's club, the appropriate data for that club is present in thesystem. In the exemplary embodiment of FIG. 6, the auto-charge datacomprises description 605 (describing the club and/or nature of theauto-charge), frequency 610 (describing the frequency of payment such asdaily, monthly, quarterly, etc.), ID 615 (identifying the club),installation/lump fee 620 (whether the club will accept installations orrequires lump fees), cancellation policy 625 (explaining cancellationpolicy of the club), refund policy 630 (explaining the refund policy ofthe club), promotional rates 635 (providing promotional rates for, e.g.,new members, or differential rate structures depending on rank or otherpersonal characteristics), and price/fee 640 (price or fee for theclub).

FIG. 7 illustrates an exemplary embodiment of the data that may bestored in credit card database module 110 for the cardholders.Cardholder data may comprise auto-charge data 700, which may furthercomprise frequency 705, number of payments 710, amount 715, and date 717(provides date of the auto-charge payment, e.g., the 19th of eachmonth). Auto-charge data 700 may have an entry for each club thecardholder is paying using the auto-charge feature. Military 720 listsdata for a card member in the military, such as name/address 725, phone730, status 735 (e.g., retired, active duty or reserve), rank 740, andagent code 745 (identifies the installation to which the cardholderbelongs). The cardholder data may further comprise card number 750,member ID 755 (e.g., may be social security number), merchant codes 760(identifies clubs/merchants/service providers that the cardholder isassociated with), and other account data 770. In one embodiment,merchant codes 760 is also stored on the card so that the card not onlysupports normal credit card applications and the auto-charge capability,but can also function as a “door pass” that members may use to gainentry or authorization for clubs.

Graphical User Interfaces for the System In one embodiment, centralserver system 100 interfaces with user systems 105 over the Internet orlike packet-switched network using a standard GUI interface, such asbrowser pages accessed over the World Wide Web.

In this embodiment, there is a log in page for an authorized user, whomust provide a user name and password. In this embodiment, there is aso-called “home page” which includes options for member lookup (forlocating members), application processing (for processing applications),member maintenance (for changing member data, such as an address orinstallation), batch processing (for batch financial transactions),reports (for preparing reports) and administration (for profiles,maintenance of installations, clubs, and merchants). In this embodiment,there may be an application browser page for submitting an applicationover the Internet.

Methods of Using the System

According to an embodiment of the present invention, a method isprovided for a credit card system that is associated with a series ofclubs, merchants, service providers or the like so that a fullyautomated payment of dues or fees can be effectuated. Referring to FIG.8, a card provider reaches an agreement with a partner associated with aplurality of clubs, according to step 1200. The card provider thenupdates a database to include the partner and plurality of clubs, as instep 1205 (e.g., see FIGS. 2, 3, 4, 5 and 6). In one embodiment, a cardprovider reaches such an agreement with a military branch which thenprovides data describing installations and clubs that could be stored ina database such as credit card database module 110. The card providerand/or partner solicits applications for the credit instrument andinvites the applicant to join various clubs and/or set up auto-chargearrangements, according to step 1210. For example, the new recruit isinvited to apply for a card and also to join various clubs such as theOfficer's Club and golf club, for which the auto-charge feature may beset up. According to step 1215, auto-charge data is entered into theprocessing system (e.g., see FIG. 7) for each member selecting theauto-charge feature for a club. Based on the auto-charge data enteredfor the members, the system processes charges automatically, accordingto step 1220. Charges are posted to the members' accounts, according tostep 1225. In one embodiment, steps 1220 and 1225 may be processed asbatch transactions, as previously discussed. In one embodiment, steps1220 and 1225 are performed as “on-us” transactions so that interchangefees are avoided, providing savings to the card provider and/or partnerand/or clubs. In step 1230, payment is issued to the partner or clubs.In one embodiment, payment is issued to the partner, such as to amilitary base, by automated direct deposit. In another embodiment, itmay be provided that payment is issued directly to clubs.

According to an embodiment of the present invention, FIG. 9 depicts amethod for processing an application for a credit card system that isassociated with a plurality of clubs and that supports auto-charging.The user logs on to the system, as in step 1305, and the systemauthenticates the user, as in step 1310. In one embodiment, where thepartner is a military branch, each installation or base may have anauthorized user for accepting applications on behalf of servicepersonnel. The user submits the applicant's name, address and othergeneral data on behalf of the applicant, as in step 1315. The userrequests whether the applicant wants to auto-charge certain clubs, as instep 1320. The user submits the applicant's auto-charge data, as in step1325. The application is submitted to the application processor, as instep 1330 (e.g., see FIG. 1, application processor system 125). Theapplication decision is returned to the user, as in step 1335. Thecredit card database is updated to include the applicant if theapplication is approved, as in step 1340 (e.g., see FIG. 1, credit carddatabase module 110; FIG. 7).

According to an embodiment of the invention, FIG. 10 depicts a method ofbatch processing auto-charge dues or fees for the system. Referring toFIG. 10, the system (e.g., see FIG. 1, central server system 100)invokes the batch processing logic (e.g., see FIG. 1, dues processorsystem 140), according to step 1400. The server system builds a list ofmembers at each installation or base, according to step 1405. The serversystem builds a list of clubs (for which the auto-charge option isenabled) for each member, according to step 1410. Central server system100 obtains the dues or fees amount for each member, according to step1415. The server system sends dues files (e.g., a batch of transactionrequests) to transaction processor system 145 for authorization (e.g.,see FIG. 1, transaction processor system 145), according to step 1420.The server system receives the results of the transaction requests,i.e., an authorization number or rejection for the transaction requests,as in step 1425. The server system posts the transactions to themembers' accounts, as in step 1430. The server system transfers funds toclub accounts, as in step 1435. The server system may then issue reportsto partners on authorization failure/success and gross/net charges, asin step 1440.

Other embodiments and uses of this invention will be apparent to thosehaving ordinary skill in the art upon consideration of the specificationand practice of the invention disclosed herein. The specification andexamples given should be considered exemplary only, and it iscontemplated that the appended claims will cover any other suchembodiments or modifications as fall within the true scope of theinvention.

1-25. (canceled)
 26. A card processing system for allowing cardholdersto automatically charge fees to clubs, merchants or service providers,comprising: means for issuing credit cards capable of point-of-saletransactions to be posed on a cardholder's account; a card issuerdatabase having information that associates individual cardholders witha plurality of clubs, merchants, or service providers for whichauto-charge transactions are performed by the card issuer; saidauto-charge transactions being performed without requiring, for eachauto-charge, a cardholder to submit payment authorization or the club,merchant, or service provider to submit a payment transaction request;the card issuer database accessible by the card issuer to allow at leastone of existing cardholders and cardholder applicants to choose clubs,merchants or service providers, to be associated with that cardholderand to enable said auto-charging function for the selected clubs,merchants, or service providers; a card processor for performing theauto-charge transactions which are for payments owed by the cardholderto selected clubs, merchants, or service providers in consideration forservices or goods; the card processor accessing the card issuer databaseto perform the auto-charge transactions; the auto-charge transactionsresulting in funds being charged to the cardholder's credit account andfunds being credited to an account of a third party other than thecardholder, the third party comprising one or more selected clubs,merchants, and service providers.
 27. The card processing system ofclaim 26, further comprising: an interface to the card issuer databasewhich presents a series of available clubs, merchants, or serviceproviders from which the cardholder or cardholder applicant can selectspecific ones of the available clubs, merchants, or service providers.28. The card processing system of claim 27, wherein said interfacefurther permits the cardholder or cardholder applicant to choose andhave entered into the card issuer database clubs, merchants, or serviceproviders other than those presented as available.
 29. The cardprocessing system of claim 27, wherein the interface is accessible to athird party other than the card issuer comprising a partner to the cardissuer, the partner comprising a military organization, a university, ora college.
 30. The card processing system of claim 29, wherein the cardissuer can control the access of the partner to the card issuer databasesuch that the partner can access only selected information.
 31. The cardprocessing system of claim 30, wherein the card issuer controls accessto the card issuer database for multiple partners, each partner havingaccess to its particular selected information.
 32. The card processingsystem of claim 27, wherein the series of available clubs, merchants, orservice providers are organized in the card issuer database according togroups, each of the multiple groups having its associated clubs,merchants, or service providers.
 33. The card processing system of claim32, wherein each cardholder or cardholder applicant is associated with agroup such that the series of available clubs, merchants, or serviceproviders that is presented corresponds to that cardholder's orcardholder applicant's group.
 34. The card processing system of claim32, wherein the groups comprise at least two branches of the military.35. The card processing system of claim 34, wherein the groups furthercomprise at least one college or university.
 36. The card processingsystem of claim 29, wherein the partner is enabled by the card issuer toperform Web-based maintenance on the cardholder informationcorresponding to that partner.
 37. The card processing system of claim36, wherein the partner can perform said maintenance by updating addressinformation of cardholders.
 38. The card processing system of claim 26,further comprising: a report generator module for generating activityreports that can be accessed over a public computer network by at leastone of (a) participating clubs, merchants, or service providers, and (b)partners of the card issuer.
 39. The card processing system of claim 26,wherein at least some of the issued credit cards are adapted for use asan admission pass to specific facilities corresponding to selectedclubs, merchants, or service providers.
 40. A card processor forallowing cardholders to automatically charge fees to clubs, merchants orservice providers, comprising: a card processor for identifyingauto-charge transactions corresponding to individual credit cardaccountholders; said card processor operatively coupled to a card issuerdatabase having information that associates individual cardholders witha plurality of clubs, merchants, or service providers for whichauto-charges are performed by the card issuer; said auto-chargetransactions being performed without requiring, for each auto-charge, acardholder to submit payment authorization or the club, merchant, orservice provider to submit a payment transaction request; the cardprocessor performing the auto-charge transactions which are for paymentsowed by the cardholder to selected clubs, merchants, or serviceproviders in consideration for services or goods; the card processoraccessing the card issuer database to perform the auto-chargetransactions; the auto-charge transactions resulting in funds beingcharged to the cardholder's credit account and funds being credited toan account of a third party other than the cardholder, the third partycomprising one or more selected clubs, merchants, and service providers.41. The card processor of claim 40, wherein the card processor isadapted to perform some auto-charge transactions as “on us” transactionsand others as “not on us” transactions.
 42. The card processor of claim40, wherein the card processor is adapted to determine which auto-chargetransactions can be performed as “on us” transactions that are executedwithout submitting a transaction request through a card interchange thatsupports multiple issuers.
 43. A computer-implemented method of cardprocessing allowing cardholders to automatically charge fees to clubs,merchants or service providers, comprising: (1) issuing credit cardscapable of point-of-sale transactions to be posed on a cardholder'saccount; (2) providing a card issuer database having information thatassociates individual cardholders with a plurality of clubs, merchants,or service providers for which auto-charge transactions are performed bythe card issuer; (3) performing said auto-charge transactions withoutrequiring, for each auto-charge, a cardholder to submit paymentauthorization or the club, merchant, or service provider to submit apayment transaction request; (a) the auto-charge transactions being forpayments owed by the cardholder to selected clubs, merchants, or serviceproviders in consideration for services or goods; (b) the auto-chargetransactions resulting in funds being charged to the cardholder's creditaccount and funds being credited to an account of a third party otherthan the cardholder, the third party comprising one or more selectedclubs, merchants, and service providers; and (4) accessing the cardissuer database to allow at least one of existing cardholders andcardholder applicants to choose clubs, merchants or service providers,to be associated with that cardholder and to enable said auto-chargingfunction for the selected clubs, merchants, or service providers. 44.The computer-implemented method of claim 43, further comprising the stepof: (5) Providing access to the card issuer database to one or morepartners of the card issuer, each partner being associated withparticular cardholders in the card issuer database.
 45. Thecomputer-implemented method of claim 43, wherein the step of issuingcredit cards comprises issuing at least some credit cards which adaptedfor use as an admission pass to specific facilities corresponding toselected clubs, merchants, or service providers.